If the Government Were to Give Every Student a Voucher

question 37

Multiple Choice

If the government were to give every student a voucher to redeem at any school,it would be intervening through _________.If the government were to mandate no tuition cost more than $6,000/year without intervening in any other way,it would be intervening through _________.

• A) public provision; private provision
• B) the price mechanism; the price mechanism
• C) the quantity mechanism; the price mechanism
• D) the price mechanism; the quantity mechanism

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Definitions:

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.

Compounded Annual

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Nominal Rates

The stated interest rate on a loan or investment, not accounting for inflation or compounding effects.

Real Rates

Real rates refer to the interest rates adjusted for inflation, representing the true cost of borrowing or the real yield on an investment.